52-4-203. Licensing. (1) A person may not operate a community home for persons with severe disabilities, also called a facility, unless the facility is licensed by the department.

(2) A community home for persons with severe disabilities must be inspected and licensed annually by the department of public health and human services.

(3) A license may not be sold, assigned, or transferred. Upon discontinuance of the operation or upon transfer of ownership of a facility, the license must be returned to the department or destroyed by the owners.

(4) A facility shall display its license in a conspicuous place near its admitting office.

(5) If a facility is the subject of substantiated claims of abuse, neglect, or exploitation, or if a facility does not meet the minimum standards for operating a community home for people with severe disabilities, the department may reduce the facility's license to, or issue the facility, a provisional license for less than 1 year if operation or continued operation of the facility will not result in undue hazards to its residents.

(6) The department may inspect a licensed community home for people with severe disabilities whenever it considers necessary. The entire premises of a licensed facility must be open to inspection, and access to all records must be granted at all reasonable times.